In the Name of the Almighty, the Beneficent, the Merciful

“O you who believe! When you contract a debt for a fixed period, write it down. Let a scribe write it down in justice between you. Let not the scribe refuse to write, as Allah has taught him, so let him write. Let him (the debtor) who incurs the liability dictate, and he must have Taqwaa of Allah, his Lord, and diminish not anything of what he owes…” Qur’an 2V282

By Kabir Alabi Garba

Bretheren, the focus of our sermon, today, is a subject that touches almost every household, every business, every professional, every student, and increasingly, almost every young Nigerian: Debt.

This is because debt can build a house. Debt can start a business. Debt can finance education. Debt can help a family survive an emergency. But debt can also destroy peace. Debt can break marriages. Debt can damage friendships. Debt can destroy businesses. Debt can humiliate a person. And when debt is combined with ignorance, impatience, greed and exploitation, it can become a prison without walls.

Islam does not teach us to be careless about money. Islam does not tell us that financial planning is un-Islamic. Islam teaches us financial responsibility, moderation, honesty, documentation, planning and compassion.

Incredibly, one of the longest verses in the entire Qur’an is about a financial transaction. In the Qur’anic verse quoted above, Allah says: “O you who believe! When you contract a debt for a specified period, write it down.”

The Qur’an dedicates an extraordinarily long verse to something many people treat casually!
Why? Because money matters. Promises matter. Contracts matter. Records matter. Rights matter. Accountability matters.

In that verse, Allah teaches us that when we borrow, we should know: How much? From whom? For what purpose? When will it be repaid? Under what terms? Yet some of us borrow money with nothing written down.

A brother gives another brother ₦500,000 and says: “Don’t worry, we are brothers.” Six months later, they are no longer brothers! Why? Because nobody wrote anything down. Islam says: document it. Documentation does not demonstrate lack of trust. It protects trust.

Dear brothers and sisters, we must make an important distinction. Not every debt is forbidden in Islam. A person may borrow for a legitimate purpose. A person may buy something on deferred payment under permissible terms. A person may take a lawful business facility.

But Islam warns us against ribā — interest/usury, deception, exploitation and financial arrangements that violate Islamic principles.

In Qur’an 2:275, Allah declares: “Allah has permitted trade and forbidden interest.” Therefore, Muslims must learn before signing. Read the agreement. Understand the charges. Ask questions. Know the repayment schedule. Know the consequences of default.

And if the transaction involves interest, uncertainty about its permissibility, or complicated financial instruments, consult a qualified Islamic scholar and a competent financial professional before committing yourself.

Do not sign a contract simply because someone tells you: “Everybody is doing it.” Everybody is not your accountant. Everybody is not your financial adviser. And everybody will not pay your debt when the consequences arrive.

Brothers and sisters in Islam, there is another debt that we must confront: Borrowing to maintain an image. Borrowing for consumption. Some people borrow money to hold an expensive wedding. Some borrow to buy a car they cannot afford. Some borrow to wear clothes they cannot afford. Some borrow to host celebrations they cannot afford. Some borrow to live in neighbourhoods they cannot afford. Some borrow simply because they cannot bear the embarrassment of saying: “I cannot afford it.”

But let us remember: You do not have to impress people who will not help you repay your debt. Do not borrow ₦5 million to organize a celebration that lasts five hours and spend the next three years repaying it. Do not enter financial bondage merely to impress relatives and neighbours. In Qur’an 7:31, Allah says: “Eat and drink, but do not be excessive. Indeed, He does not like those who commit excess. Islam teaches dignity. Islam teaches cleanliness.
Islam teaches generosity. But Islam does not teach financial recklessness.

The seriousness of debt is demonstrated by the supplications of the Messenger of Allah (SAW) as he used to seek Allah’s protection from debt. Among his supplications was: “O Allah, I seek refuge in You from sin and debt.”

The companions asked why he frequently sought refuge from debt, and the Prophet (SAW) explained that when a person is overwhelmed by debt, he may speak and lie, and make promises and break them. Debt does not merely attack the pocket. Debt can attack character. A desperate debtor may begin lying. A person may avoid telephone calls. A person may hide from creditors. A person may become angry with family members. A person may borrow from one person to repay another. Then borrow from a third to repay the second. Until the entire financial structure collapses. This is why the Muslims must learn debt management before debt management becomes debt crisis.

Brethren, it is important to note that financial literacy is part of the responsibility. It simply means understanding how money works and making informed decisions about it. Every Muslim household should know at least five things: What comes into the household (incomes)? What goes out (expenses)? What do you owe (debts)? What do you own (assets)? What are you planning for (financial goals)?

If one does not know these five things, one may be earning money without actually managing money. Income is not wealth. High salary is not financial security. A large business turnover is not necessarily profit. And owning expensive things does not necessarily mean that you are financially healthy.

Sometimes, the person driving the newest car is financially weaker than the person driving an old car without debt. Sometimes the modest-looking family has savings, investments and no debt. And sometimes the person appearing successful is drowning financially. Do not confuse appearance with prosperity.

Another important point is budgeting. Muslims are expected to give every naira a purpose.
When income arrives, don’t immediately ask: “What can I buy?” Ask: “What must this money accomplish?” Provide for your family. Pay legitimate obligations. Set aside savings. Plan for emergencies. Invest responsibly. Give charity. And leave room for unexpected circumstances. A budget is not a punishment. A budget is a plan for freedom. If you don’t tell your money where to go, your impulses will decide where it goes.

Also, a distinction should be made between needs and wants. In fact, one of the greatest financial disciplines is learning to distinguish need from want. Food is a need. Luxury dining is a want. Shelter is a need. A mansion beyond your means is a want. Transportation may be a need. An unnecessarily expensive car may be a want. Education may be a need. Constantly upgrading gadgets may be a want .

Islam does not prohibit enjoying lawful blessings. But Islam teaches balance. The Prophet (SAW) said: “The strong believer is better and more beloved to Allah than the weak believer, while there is good in both.” Strength includes the ability to fulfil responsibilities — including financial responsibilities.

A powerful financial principle is: If you cannot afford it today and it is not necessary, you may be able to wait. Delay is not failure. Living within your means is not poverty. Owning an older phone is not shameful. Driving an older car is not disgraceful. Wearing modest clothing is not humiliation. Living in a smaller house is not failure. Financial peace is more valuable than social applause.

Another dimension to this sermon is those who lend. It is important to speak to those who have money. Islam does not only regulate the borrower. It regulates the lender. If your brother owes you money and genuinely cannot pay, do not turn his hardship into an opportunity for humiliation.

In Qur’an 2: 280, Allah says: “And if the debtor is in hardship, then grant him time until it is easy for him to repay.” What a beautiful principle! If someone genuinely cannot pay, give him time. Do not publicly disgrace him. Do not insult his family. Do not threaten him. Do not exploit his desperation. Do not use his debt as a weapon.

And do not increase his burden because he is already struggling. The Prophet (SAW) praised those who showed kindness in financial dealings.